Egypt’s housing sector is promising thanks to growing supply and demand with roughly 6,000 residential units delivered in the third quarter (Q3) in 2024, according to a report released by real estate research agency JLL.
“Nearly 6,000 units were delivered in the third quarter, increasing Cairo’s total residential stock to around 288,000 units. With several project handovers deferred to the first half of next year, around 7,000units are scheduled for completion in the final quarter of the year,” said the JLL, a copy of which was made available to The Egyptian Gazette.
The report found that developers’ most recent project launches and completions targeted the North Coast and other coastal cities, where activity typically peaks in the third quarter. In contrast, new project announcements in the capital remained relatively subdued.
“During Q3, both sales prices and rental rates rose significantly, drivenby various factors. High demand for rental properties, largely due to affordability constraints, led to increases of 115 per cent in rental rates in 6thof October and 124 per cent in New Cairo compared to the same period last year,” it said.
The report noted sales prices also increased in response to economic fluctuations related to inflation and currency devaluation in the resale market.
“In 6th of October, sales prices surged by 146 per cent annually, while in New Cairo, they rose by 148 per cent. However, these figures represented quoted prices, and landlords were generally open to negotiations to remain competitive against developers offering attractive extended payment terms to potential buyers,” it said.
The rental market, especially for apartments, is expected to remain favourable for tenants in the short term. This is fuelled by the anticipated continuation of rising property sales prices, coupled with the ongoing disparity between inflation rates and income levels.
“Nevertheless, the country is gradually moving toward recovery, largely driven by significant foreign direct investment (FDI) inflows and the recent approval of a $820 million loan from the International Monetary Fund (IMF), aimed at restoring macroeconomic stability,” it noted.
Consequently, the market outlook remains optimistic, with expectations for revival in the medium to long terms it fully adapts to these new reforms.
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